Schaeffer's Trading Floor Blog

Analyst Update: Abercrombie & Fitch Co., Avago Technologies Ltd, and Dollar General Corp.

Analysts adjusted their ratings on ANF, AVGO, and DG

by 8/29/2014 11:46 AM
Stocks quoted in this article:

Analysts are weighing in today on teen apparel name Abercrombie & Fitch Co. (NYSE:ANF), semiconductor concern Avago Technologies Ltd (NASDAQ:AVGO), and discount retailer Dollar General Corp. (NYSE:DG). Here's a quick look at today's brokerage notes on ANF, AVGO, and DG.

  • Despite yesterday's 5.2% earnings-induced loss, ANF received price target hikes to $42 (from $37) and $43 (from $37) at Topeka Capital and Mizuho, respectively. Nevertheless, the shares are fractionally lower around midday at $41.83 -- though, on a year-to-date basis, they're still up 27%. Despite this longer-term technical tenacity, options traders have been targeting puts over calls in recent weeks. Abercrombie & Fitch Co.'s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.68 ranks just 13 percentage points from an annual bearish acme.

  • AVGO has tacked on 8.5% today to trade at $82.87, and earlier touched a record high of $84.80. Buoying the stock was last night's fiscal third-quarter earnings beat and solid guidance, and a subsequent flurry of bullish brokerage notes -- including price-target hikes at no fewer than 13 firms. Taking a step back, shares of Avago Technologies Ltd have more than doubled on a year-over-year basis. Nevertheless, the stock's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.70 ranks higher than 90% of all readings from the past year, revealing options traders have strongly preferred bearish bets over bullish in recent months. Given AVGO's on-chart performance, however, a portion of these put buyers may be shareholders hedging against an unexpected pullback in the equity.

  • DG is down 1% to hover near $63.59, despite receiving an upwardly revised price target -- to $78 from $65 -- at BMO. This comes a day after the retailer announced it is still attempting to buy Family Dollar Stores, Inc. (NYSE:FDO). Taking a step back, Wall Street is almost evenly split on Dollar General Corp. Nine covering analysts have give the shares a "strong buy" rating, compared to eight that have doled out "hold" opinions. Meanwhile, DG's consensus 12-month price target of $69.39 stands at a modest premium to the current share price.

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